Bumpy ride ahead for Indian IT firms
Indian IT firms are likely to face a volatile situation in the near future w.r.t. the banking and financial services, which account for a major share of the tech services business. In addition, major global developments like slowdown in economic growth, US-China trade war and Brexit are likely to affect the sector, as per a latest report by Kotak Institutional Equities. Added to this, are the risks of lowering of interest rates and volatility in equity markets. Companies, however, expect a more favorable environment for growth in the coming months.
The report said that “…large BFS firms expect a better business environment from April but the external environment has turned for the worse in the past few weeks and…overall tech spending growth will be lower than last year with additional investments funded by higher cost take-outs”.